IDLC Finance Ltd vows to change the present scenario of country's stock market through offering diversified and innovative products for the investors.
"With an enduring presence in the country's financial market for a long 32 years, we always follow the blue-ocean business strategy, rather than the red-ocean strategy and innovation is part of our DNA," Arif Khan, CEO & Managing Director of IDLC Finance Limited told FE in an interview recently.
IDLC Finance, the largest financial institution in the country recently launched its first open end mutual fund, IDLC Balanced Fund.
"We started a cultural shift where investors are assisted by skilled and honest fund managers to ensure profitable return." Mr. Arif Khan, an aficionado on financial discipline, asserted.
The company is also planning to bring more innovative products such as venture capital and private equity in near future.
"We are the pioneer of at least 10 innovative and diversified products in our financial market and have now launched a similar product for the small investors," the IDLC MD said.
He hoped IDLC Balanced Fund will help change the present scenario of the stock market as investors will get real professional services from a company such as IDLC.
IDLC Asset Management Limited announced the launch of its first open end mutual fund - IDLC Balanced Fund- on May 22 last.
IDLC Finance Limited is the Sponsor of the fund and IDLC Asset Management Limited is its Asset Manager. Investment Corporation of Bangladesh is the Trustee & Custodian of the fund.

IDLC Balanced Fund offers fund management through skilled Fund Managers mitigating investment risk. Investors can invest anytime and any amount starting from BDT 5,000 (for individuals) and BDT 50,000 (for institutions) with the facility of withdrawing funds at any time at Net Asset Value with the lowest exit load. Investors can also check the present value of their investment every week on the company's website.
The objective of IDLC Balanced Fund is to deliver the investors regular annual income as well as capital gain in the long term. IDLC Balanced Fund is an ideal fit for people looking for a long-term investment vehicle to better achieve their life goals.
Mr Arif Khan said, "IDLC launched its first mutual fund for the common people of Bangladesh. As a result of mass participation presumably with a long-term orientation, our capital market will receive a good, stable flow of fund. Most importantly, since individual investors will participate in the capital market through institutionalised products like mutual funds, volatility of the market will be reduced."
 "IDLC Balanced Fund will give people a tool to better manage their fund and grow it consistently over a longer horizon to materialise their aspirations of life. We expect our initiative will benefit our citizens, our capital market and, as a whole, the nation."
IDLC, as one of the most progressive financial brands, has always tried to come up with financial products/ services to enrich the lives of people. It believes, through the launching of mutual funds, a healthy investment-worthy environment will be created which will encourage common people to consider investment for their better financial growth. This initiative will bring a positive change in the investment practices of the common people of this country.
"We are the pioneers among all the FIs in deposit mobilisation, factoring, SME financing, issuance of securitised bond." Mr. Arif said.
He attributed full compliance of corporate governance and real professionalism to the 'rip-roaring success' of IDLC Finance in all business areas.
"We are far ahead of many of the commercial banks as far as profit and growth margins are concerned," he pointed out.
IDLC Finance achieved 33 per cent growth in profit in the just concluded half year.
"From day 1, our board remains professional without any interference in the company's day to day operation."
"Our first managing director, Aminul Islam, a legend in the industry, developed a culture of openness in the company to build an in-house leadership which helped us to groom as many as six professionals who later became chief executive officers of other FIs,"
Mr. Arif said the company evaluates the performance-driven work culture and the IDLC officials-employees know it very well.
Commenting on the stock market scenario, he said in last 6 months, stock market rose roughly 15 per cent.
"It is a very good return for affected investors which helped a lot to clear their outstanding margin loans," the IDLC top executive said.
"The stock market is now almost free from a huge burden of stuck-up loan due to 'margin call', a continuous adjustment process to settle the loans," Mr. Arif disclosed.
"Since 2014, IDLC is clear from accumulated margin loan burden after provisioning."
Hailing the functioning of FRC and demutualisation of bourses, Mr. Arif who once served as Member of BSEC said if insider trading law is updated it will help to develop the stock market.
Outlining the future vision of the company, he said expansion of SME financing and launching of venture capital for start-up entrepreneurs are among the company's planning.
"An eco-system is being created for the young entrepreneurs under the Alternative Investment Rules and being a responsible financer, IDLC will do its level best in this regard."
"We must not forget that the present world's movers and shakers once began their journey as start-ups," Mr. Arif said.
"Our NPL alone tells you that the company has never been subjected to prescribed loans from board. The average Non Performing Loan (NPL) in the market is 10 per cent but the actual NPL is higher than this because some of the bad loans are rescheduled and restructured. So, the real NPL which is termed as extended NPL is 17%-18% in the market.
But our NPL is less than 3%. Interestingly, IDLC has been able to maintain its NPL in the same range for the last 32 years. I believe it is a resounding achievement by any financial organisation in the country. Because it shows that we have always been channelizing the depositors' money in proper places.
Many of the commercial banks are making less profit than us. IDLC made a profit of Tk 1.78 billion after tax last year. In the first quarter of this year, IDLC made a profit of Tk 600 million which is higher than at least 80 per cent commercial banks of the country.
The size of our loan book is a little over Tk 70.0 billion now. About 45 per cent of this loan is concentrated in the SME sector. So, we have almost half of our loans in the SME sector and we plan to disburse even more."
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Source: The Financial Express